The PPSA, the regulations and the register established under them (PPSR) replace, with a single national Act, countless and conflicting Commonwealth, state and territory laws and registers for company charges, bills of sale, ship mortgages, motor vehicle securities, crop liens, stock mortgages and most other securities affecting tangible and intangible personal property rights. The PPSR is integral to the nationalisation of personal property securities law.

In addition to the above, the PPSA also introduced major substantive changes to the law in force prior to 30 January 2012 which are particularly important for creditors, equipment lessors, consignors, retention of title suppliers, bailors, purchasers of accounts receivable and insolvency practitioners. These changes to the law have had a significant effect on documentation, business processes and risk management.

The PPSA allows for the registration of securities that could not be registered previously. These include securities by individuals over intangible property such as goodwill.

The PPSA also applies to charges that apply to security interests granted by both companies and individuals over personal property. One of the major changes to the previous law concerning securities affected by the PPSA, is that interests that were not regarded as securities, eg retention of title clauses and leases of goods, are now regarded as security interests.

See Comparison between pre-PPSA law and the PPSA.

The PPSA defines security interests as any interest or right in relation to personal property provided for by a transaction that, in substance, secures payment or performance of an obligation: s 12(1) . In addition to traditional forms of security such as chattel mortgages, fixed charges, floating charges and pledges, the PPSA deems certain rights in personal property to be security interests such as leases of goods, retention of title arrangements, hire purchases and consignments: s 12(2) . There is also a subcategory of security interests which are deemed by the PPSA to be security interests regardless of whether they secure payment or performance of an obligation: s 12(3) . These deemed security interests include:

• the interest of a transferee under a transfer of accounts receivable or chattel paper;

• the interest of a consignor who delivers goods to a consignee under a commercial consignment; and

• the interest of a lessor or bailor of goods under a PPS lease.

See Security interests.